Summary
Coca-Cola Company's (KO) first quarter 2015 results, filed on April 29, 2015, show a slight decrease in net income attributable to shareowners, falling to $1,557 million from $1,619 million in the prior year's comparable period. This was accompanied by a dip in diluted earnings per share to $0.35 from $0.36. The company experienced a significant increase in net operating revenues to $10,711 million, up from $10,576 million year-over-year, driven by volume growth and favorable price, product, and geographic mix, though partially offset by a substantial 6% negative impact from foreign currency fluctuations. The company is actively managing its portfolio and capital structure. Significant activities during the quarter included substantial debt issuances and repayments, alongside a continued focus on productivity and reinvestment initiatives. Notably, the company incurred significant charges related to the early extinguishment of debt and dealt with significant currency headwinds, particularly in Venezuela, which impacted net income through other operating charges and foreign currency remeasurement losses. Despite these challenges, the company maintained a strong liquidity position and continued its share repurchase program.
Financial Highlights
55 data points| Revenue | $10.71B |
| Cost of Revenue | $4.10B |
| Gross Profit | $6.61B |
| SG&A Expenses | $4.08B |
| Operating Income | $2.30B |
| Interest Expense | $447.00M |
| Net Income | $1.56B |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 4.37B |
| Shares Outstanding (Diluted) | 4.42B |
Key Highlights
- 1Net income attributable to shareowners decreased to $1,557 million ($0.35 per diluted share) from $1,619 million ($0.36 per diluted share) in the prior year's quarter.
- 2Net operating revenues increased by 1.3% to $10,711 million, driven by volume growth and favorable price/product/geographic mix, but hindered by a 6% negative impact from currency fluctuations.
- 3Operating income decreased to $2,296 million from $2,376 million, impacted by higher selling, general, and administrative expenses and significant other operating charges.
- 4The company issued €8.5 billion in long-term debt and retired $1.5 billion in maturing debt, while also extinguishing $2.0 billion of debt early, incurring $320 million in charges.
- 5Significant charges were recorded due to Venezuela's currency devaluation, including $56 million for trade receivables write-down and $52 million for trademark impairment.
- 6The company continues its productivity and reinvestment program, incurring $233 million in other operating charges related to these initiatives and integration efforts.
- 7The company maintained a strong cash flow from operations, generating $1,574 million, and ended the quarter with $8,211 million in cash and cash equivalents.